x264 is an open source H.264 encoder/decoder that can encode blu ray compatible videos. Rather than using x264 directly, you might want to use ffmpeg built with x264 support.
ffmpeg and its command line options can be a bit of a jungle to navigate, but try the dedicated forum, mailing list or...
You could always boot up a live Linux CD (knoppix/debian/...) and run clamav. Make sure to update it first. A benefit of running a live CD (created on a different computer!!) is that you won't have any viruses running that could theoretically circumvent the anti-virus when it is installed.
As an alternative to the pricey hardware, there is software that can do the job pretty well with some standard USB hubs, like USB duplicator now. I'm sure there's more if you google, but I haven't come across free software for this.
To recover, maybe you could try EnCase? I believe there's a trial version you could give a spin.
You could also try autopsy/the sleuth kit, which is free.